Progenity Inc (NASDAQ:PROG) is taking a hit in the opening session. The stock has fallen about 53% so far this year.
Major Trigger:
Progenity Announces $40 Million Private Placement
Key Highlights:
- announced that it has entered into a definitive securities purchase agreement with two leading healthcare-focused investment funds for the sale of units consisting of shares of common stock (or pre-funded warrants to purchase common stock in lieu thereof) and warrants to purchase common stock, as described below, in a private placement expected to result in gross proceeds to Progenity of approximately $40 million, before deducting placement agent commissions and other offering expenses.
- Pursuant to the terms of the securities purchase agreement, at the closing of the private placement, Progenity will issue units representing an aggregate of 16,194,332 shares of common stock (or pre-funded warrants in lieu thereof) and warrants to purchase an aggregate of 16,194,332 shares of common stock. The aggregate purchase price of each unit, which consists of one share of common stock (or pre-funded warrants in lieu thereof) plus a warrant to purchase one share of common stock, is $2.47.
- The warrants will have a per share exercise price of $2.84 and may be exercised at any time on or after the closing date and through the fifth anniversary of the closing date. The price per unit was based in part upon the average of the last five closing prices of the common stock on the Nasdaq Global Market. If exercised for cash, the warrants would result in additional gross proceeds to Progenity of up to approximately $46 million.
Market Reactions
As of 10:43, PROG stock fell by 8.20% at $2.46. Total volume so far stood at 1.87 shares, compared to its average volume of 809K shares. The stock moved within a range of $2.37 – 2.4786 after opening at $2.44.
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